Sprint Nextel (NYSE: S) and Level 3 Communications (NasdaqGS: LVLT) are discussing the possibility of a joint venture involving their long-haul networks, according to the Wall Street Journal.

The two have been talking in “recent weeks,” which is about how long it’s been clear that Qwest Communications was not going to find a buyer willing to pay the price it wanted for its long-haul network.

When asked at an investor conference yesterday whether Qwest had considered divesting its long-haul network through a spin-out in combination with Sprint’s network, Qwest’s chief financial officer Joe Euteneuer said, “We entertained all possibilities.” more